Outsourcing Manufacturing To China Vs Mexico – Labor Laws And Norms

US and Canadian companies have concerns about outsourcing manufacturing, not the least of which is worker welfare. No company wants to be associated with worker exploitation.

The good news: If your company is outsourcing manufacturing to Mexico, you can rest assured that workers are treated fairly. Mexico has labor laws quite similar to the US and Canada, and they are enforced.

Intran is committed to worker safety and welfare because we understand our workers are our key to success.

Labor Abuse Is A Problem In Some Countries

Attitudes in many countries about workers and labor regulations don’t always reflect North American norms. While Mexico, the US, and Canada have safety regulations and labor laws, many Asian countries do not have these same rules. For example:

• In the book China’s Workers Under Assault by Anita Chan, the author shares stories of workers being fined and superiors taking extreme disciplinary actions
• Worker exposure to dangerous chemicals is not uncommon in some countries
• Allegations of worker abuse is common, even today – news from Cambodia, Malaysia, Indonesia, Thailand, et al shows how labor regulations and attitudes differ

To be clear: There are plenty of factories in the world treating workers fairly and ethically. Stories of labor abuse are not proof that every manufacturer outside North America is treating workers that way.

Still, the odds of working with a manufacturer that treats workers poorly are lower when outsourcing manufacturing to Mexico. This is easy to confirm, because it’s much easier for US and Canadian companies to visit Mexican manufacturing facilities than facilities in China.

Mexican Labor Laws Are Based On US and Canadian Laws

A lot of the aspects of Mexican labor law will seem familiar to US and Canadian businesses. For example, in Mexico:

• Workers hired on a full-time basis can’t be dismissed without cause
• Workers cannot work more than 48 hours per week without earning overtime
• Overtime pay rates are higher than normal pay rates
• Workers cannot work more than six days a week
• Full time workers receive a week’s vacation after one year on the job
• Full time workers are also entitled to paid holidays
• Workers in Mexico have a right to organize and collectively bargain, sue their employer, etc.
• Mexican authorities inspect factories, verify working conditions meet requirements, and ensure labor rules are being followed on a regular basis

While there are differences between the way workers work in the US or Canada vs. Mexico, they are more the same than not. Doing business with a Mexican manufacturing company is a good choice for a lot of reasons, including worker welfare.

Not to mention, if/when stories of worker abuse come out, they tend to be met with consumer outrage. Apple’s negative publicity over their relationship with Foxconn is an excellent example of what can go wrong when outsourced manufacturing isn’t carefully considered.